Firm warns pandemic will continue to have impact on bottom line

Lendlease racked up a near 拢21m pre-tax loss last year with the firm blaming the impact of covid-19 for sinking into the red.

Accounts for Lendlease Europe, which covers its work in the UK as well as some schemes in Italy and Latin America, said the firm slumped to a 拢20.7m pre-tax loss in the year to June 2021 from a 拢157,000 pre-tax profit last time. Revenue was down 8% to 拢764m.

It said a tax credit of 拢14m narrowed post-tax losses to 拢6.8m, which was 26% up on the 拢5.4m post-tax loss it filed in 2020.

The firm, whose jobs include refurbishing Manchester Town Hall, building the new Google headquarters at King鈥檚 Cross and an office block in Croydon called Ruskin Square for Stanhope, said the 鈥減andemic continued to impact the business with ongoing challenging operating conditions鈥�.

Lendlease, whose business is split between construction and development, said it continued 鈥渢o see weakened demand for rentals and new apartment product, particularly in London. But with the easing of covid restrictions and increasing activity in urban centres we are starting to see demand return to these markets.鈥�

ruskin square

Lendlease is behind this scheme at Ruskin Square, which has been designed by AHMM

Revenue from its development arm dropped more than 拢100m to 拢79.4m

Construction revenue jumped 22% to 拢538m as stalled jobs restarted but it warned: 鈥淭he pandemic has resulted in delays in new contract awards and project commencements which is expected to have an impact on future profits.鈥�

The accounts show the firm, which is due to move from its Regent鈥檚 Place address to new offices at Merchant Square in Paddington later this year, has a 拢1bn backlog of construction work.

The average number of employees during the period was 1,300, down from 1,400 last time.

The company did not say how much it had received in furlough cash from the government鈥檚 Coronavirus Job Retention Scheme but in the group鈥檚 2021 annual report Lendlease said it received AUD$10m (拢5.7m) from this scheme and one in Singapore with the firm saying the payments from both programmes were received in the first half of the year. It added that it did not receive money from Australia鈥檚 JobKeeper scheme during the year.

The highest paid director, who is not named, saw his income drop 5% to 拢855,000.

In the firm鈥檚 group accounts Lendlease Europe chief executive Neil Martin, who is also a group executive, was paid a basic salary of 拢670,000 from September 2020, after being given a 拢120,000 pay rise after taking over the role from Dan Labbad in September 2019. His total renumeration for the period came in at AUD$1.472m (拢843,000).

Topics